Chapter 6 Forms Of Busniess Ownership

Question 1

Partnership

Answer 1

Legal form of business with 2 or more people

Question 2

Corporation

Answer 2

Legal entity with authority to act and have liability separate from its owners

Question 3

Liability

Answer 3

Includes the responsibility to pay all normal debts and to pay cause of a court order or law

Question 4

Unlimited liability

Answer 4

Responsibility of business owners for all debts of the business

Question 5

General partnership

Answer 5

All owners share in the operating the business and in assuming liability for all business debts

Question 6

Limited partnership

Answer 6

Partnership with one or more general partners and one or more limited partners

Question 7

General partner

Answer 7

Owner who has unlimited liability and is active in managing firm

Question 8

Limited partner

Answer 8

Owner who invests money in the business but does not have management responsibility

Question 9

Limited liability

Answer 9

Business owners who are only responsible for kissing the amount the have invested

Question 10

Partnership agreement

Answer 10

Legal do cumene that specifies the rights and responsibilities of each partner

Question 11

Public corporation

Answer 11

Has the right to issue shares to the public so it shares may be listed on stock exchange

Question 12

Private corporation

Answer 12

Is not allowed to issue stock to the public m, so it’s shares are not listed in stock exchange

Question 13

Corporate governance

Answer 13

Process and policies that determine how an organization interacts with stakeholders both internal and external

Question 14

Merger

Answer 14

Results of 2 firms forming one company

Question 15

Acquisition

Answer 15

One companies purchase of the property’s and obligations of another company

Question 16

Vertical mergers

Answer 16

Joining 2 companies involved in different stages of related businesses

Question 17

Horizontal merger

Answer 17

Joining of firms in the same industry

Question 18

Conglomerate merger

Answer 18

Joking of 2 firms in completely unrelated industries

Question 19

Leveraged buyout

Answer 19

Attempt by employees, management or a group of investors to purchase on organization primarily through borrowing

Question 20

Franchise

Answer 20

Right to use a specific business’s name and sell its goods or services to a given territory

Question 21

Co-operative

Answer 21

Owned by members and customers who pay an annual membership and fee

Question 22

Sole proprietorship

Answer 22

Business that is owned and usually managed by one person